Transportation problems: Statement Questions
a firm produces and markets several products using same product of facilities. the company is currently developing production plan for one of its products for 4 month period. the firm satisfies monthly demand for the product for either a) current months production b) inventory of product held from prayer months production c) it back orders the product that is fill the demand from production in a later month. the production cost per unit is Rs 4. holding cost is Rs 0.50 per unit per month for items held in inventory. an estimated penalty cost is incurred at Rs 2 per unit per month. capacity 50, 180, 280 and 270 units . demand is 100, 200, 180 and 300.
how manufacturer must produce a certain product in sufficient quantity to meet contracted sale in the next four months. production facilities available for this product are limited but by different amounts irrespective months. unit cost of production varies according to facilities and personnel available. product may be produced in one month and then sold for sale in later month but on an estimated storage cost of Rs 1 per unit per month. no storage cost is incurred for goods sold in the same month in which they are produced. there is presently no inventory.
month. Sales. Production Unit cost. Storage cost
1. 20....40.....14.....1
2. 30.....50....16...1
3....50....30....15... 1
4.....40....50....17....1
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